“I think they’re best positioned over the next couple of years, because...there’s huge growth in the number of deep water rigs on the way. There will be a doubling of the deep-water rig fleet, and service companies care about that, because their highest margin (and) highest revenue opportunities tend to be on these deep-water projects.”

Recommendations:

Parker likes Schlumberger, Baker Hughes and Halliburton . He says these companies are likely to see very strong earnings growth – in the mid to high 20s – for the next few years.

Parker also recommended Exxon Mobil and Chevron , which he says are cheap right now.

Disclosures:

Disclosure information was not immediately available for Parker or his company.